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Liberty Tax (TAX) Beats on Q4 Earnings as Revenues Rise
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Liberty Tax Service’s parent company, Liberty Tax, Inc. reported fourth-quarter fiscal 2016 (ending Apr 30) net income of $2.32 per share, beating the Zacks Consensus Estimate of $2.25. On a year-over-year basis, earnings improved by a penny.
The improvement came on the back of higher revenues coupled with lower expenses.
Fiscal 2016 Highlights
Fiscal 2016 earnings per share came in at $1.41, beating the Zacks Consensus Estimate of $1.31. Earnings improved 4% year over year.
Revenues improved 7% year over year to $173.4 million.
The total number of customers served in company-owned and independently owned and operated franchise offices was 2.16 million, down 3.8%. Tax returns prepared in U.S. offices declined 3.9%, while total returns in Canada offices decreased 2.9%.
Average net fee for tax preparation services in the U.S. improved 5.1%.
Liberty Tax reported total revenue of $104.4 million, up 5.6% year over year and ahead of the Zacks Consensus Estimate of $102 million. The improvement was prompted by better performance given by the financial products group and higher tax preparation fees driven by the launch of a new company store cluster program.
Total operating expenses of $53 million decreased 4.7% year over year primarily due to lower advertising costs and area developer expense. The company now operates more than 250 stores.
Income from operations was nearly $51.4 million, 18.7% higher year over year.
Financial Update
Liberty Tax exited fiscal 2016 with cash and cash equivalents of approximately $9.9 million, down 58% year over year.
Total assets increased 6% year over year to $195.7 million at the end of fiscal 2016.
Total long-term debt amounted to $17.6 million as of Apr 30, down about 18.1% year over year.
Cash from operations was $29.8 million in fiscal 2016, up 22% year over year.
Dividend
The board of directors approved a quarterly dividend of 16 cents per share payable on Jul 22 to shareholders of record on Jul 12.
The board of directors approved a share repurchase authorization to $10 million.
Zacks Rank
Liberty Tax presently carries a Zacks Rank #4 (Sell).
Performances of Other Business Service Providers
The bottom line at WNS (Holdings) Ltd. (WNS - Free Report) and Cardtronics Inc. surpassed Zacks Consensus Estimate while Avis Budget Group, Inc. (CAR - Free Report) missed the same in its recently reported quarterly results.
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Liberty Tax (TAX) Beats on Q4 Earnings as Revenues Rise
Liberty Tax Service’s parent company, Liberty Tax, Inc. reported fourth-quarter fiscal 2016 (ending Apr 30) net income of $2.32 per share, beating the Zacks Consensus Estimate of $2.25. On a year-over-year basis, earnings improved by a penny.
The improvement came on the back of higher revenues coupled with lower expenses.
Fiscal 2016 Highlights
Fiscal 2016 earnings per share came in at $1.41, beating the Zacks Consensus Estimate of $1.31. Earnings improved 4% year over year.
Revenues improved 7% year over year to $173.4 million.
The total number of customers served in company-owned and independently owned and operated franchise offices was 2.16 million, down 3.8%. Tax returns prepared in U.S. offices declined 3.9%, while total returns in Canada offices decreased 2.9%.
Average net fee for tax preparation services in the U.S. improved 5.1%.
LIBERTY TAX INC Price, Consensus and EPS Surprise
LIBERTY TAX INC Price, Consensus and EPS Surprise | LIBERTY TAX INC Quote
Behind the Headlines
Liberty Tax reported total revenue of $104.4 million, up 5.6% year over year and ahead of the Zacks Consensus Estimate of $102 million. The improvement was prompted by better performance given by the financial products group and higher tax preparation fees driven by the launch of a new company store cluster program.
Total operating expenses of $53 million decreased 4.7% year over year primarily due to lower advertising costs and area developer expense. The company now operates more than 250 stores.
Income from operations was nearly $51.4 million, 18.7% higher year over year.
Financial Update
Liberty Tax exited fiscal 2016 with cash and cash equivalents of approximately $9.9 million, down 58% year over year.
Total assets increased 6% year over year to $195.7 million at the end of fiscal 2016.
Total long-term debt amounted to $17.6 million as of Apr 30, down about 18.1% year over year.
Cash from operations was $29.8 million in fiscal 2016, up 22% year over year.
Dividend
The board of directors approved a quarterly dividend of 16 cents per share payable on Jul 22 to shareholders of record on Jul 12.
The board of directors approved a share repurchase authorization to $10 million.
Zacks Rank
Liberty Tax presently carries a Zacks Rank #4 (Sell).
Performances of Other Business Service Providers
The bottom line at WNS (Holdings) Ltd. (WNS - Free Report) and Cardtronics Inc. surpassed Zacks Consensus Estimate while Avis Budget Group, Inc. (CAR - Free Report) missed the same in its recently reported quarterly results.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>